National Retail Federation Report - POPAI

Retailers are investing in sophisticated marketing strategies allowing consumers to take control of their own shopping experience as the US economy commences its recovery phase.

In January 2011, 22,000 industry professionals from around the globe including CEO of SPOS Australia and New Zealand and POPAI Board Director, David Evans, flocked to New York City for the 100th Annual National Retail Federation Big Show where retailers and companies showcased a vast array of marketing innovations aimed at immersing and engaging shoppers through sophisticated technology and highly customised touch points.

US giant Best Buy revealed that they will be rolling out a program that integrates in-store touch screens and kiosks within the traditional retail format, allowing shoppers to access peer product reviews in order to assist them in their purchases. Such innovations have been developed in response to compelling research that suggests shoppers increasingly crave personalised recommendations rather than sales-driven rhetoric.

Mobile phone apps that enable customers to check prices in-store and compare products across retailers online are also now being implemented as part of overarching Marketing at Retail strategies responding to new consumer purchasing and media consumption trends.

David Evans said the increasing integration of digital marketing technologies was proving to be a popular tactic amongst retailers in Northern Hemisphere.

“Top-tier retailers are now, more than ever, utilising the latest in technology to optimise and customise the shopping experience. In fact, retailers in the Northern Hemisphere are taking the mantra ‘the customer is key’ to a whole new level by allowing them to take control of their shopping experience and have the power to create and customise,” said Mr Evans.

“This is something retailers in Australia need to embrace in order to keep consumers actively and meaningfully engaged with their products. In our region, retailers definitely need to be thinking more about the future and the way they can adapt to keep up with consumer demands,” he said.

One company featured at the convention that is definitely embracing a futuristic outlook is Intel. As one of the leading retail technology suppliers, Intel unveiled their “Connected Store” concept by partnering with a range of retailers, including Adidas, to install a two-story, 2,400 square-foot mock storefront at the event.

Adidas unearthed a virtual search engine which appears to the naked eye as 12 video screens called adiVERSE. The video screens display demos, allows shoppers to access all of the company’s products and have transaction capabilities so that if an item is not in stock, the consumer can order it for pick up or get it shipped direct to their door.

Intel also launched Intel AIM suite which uses video analytics to measure the performance of digitial signage formats within traditional retail formats. This innovation is aimed at helping retailers more easily customise content and monitor return on investment.

Another showcased retailer working with interactive technologies to enhance the shopping experience was Disney, who launched their new interactive experience store at the convention. The shop recently went live in Time Square in New York and has been designed to engage customers, big and small, with a number of technologies such as video direction and workshops to create unique personalised toys.

Retailers at the convention were also treated to a showcase of cutting edge technology that would directly benefit their own productivity and bottom line. The Kroger Co. presented their widely-acclaimed Advantage Checkout Scan Tunnel which uses optical technology and conveyors that move twice as fast as an existing line.

Mr Evans said the event was a world-class showcase of some of the best retail marketing solutions, providing tangible examples for those looking to integrate the most effective consumer-driven technologies within existing retail formats.

“The innovation and displays of creativity on show at the NRF convention surpassed all our expectations, and I believe that these forward-thinking retailers will definitely inspire others to push the boundaries in marketing across a range of retail channels.”